Dutch telecoms outfit KPN is to axe up to 1,750 jobs a year until 2010 as part of a major restructuring plan to cut costs and refocus its business on broadband and internet telephony.

Said chief exec Ad Scheepbouwer: "Starting in 2005, we intend to have a big push in broadband and VoIP. This will have consequences for short-term profitability, but will position us strongly for today's market and deliver greater benefits in the future."

"We anticipate that annual reductions in headcount of between 1,500 and 1,750 employees will unfortunately be inevitable until 2010. All in all, we expect to realise annual cost savings of €850m from 2010 onwards," he said.

Today's bombshell about ongoing job losses comes as the Dutch giant announced a dip in revenues and a sharp fall in annual profits.

Operating revenues for the year fell from €12.9bn in 2003 to €12.1bn. Pre-tax profit fell to €1.84bn in 2004 from €2.25bn. ®

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